Today at the Gazprom Headquarters Alexey Miller, Chairman of the Gazprom Management Committee and Alexander Filippenko, Governor of the Khanty-Mansiysk Autonomous Okrug-Yugra (KMAO) have signed an Agreement of cooperation over 2007 to 2011.

The document stipulates the priority cooperation directions of both parties including hydrocarbon production projects development, processing of associated gas and oil chemicals, secure gas supply to the regional consumers, socially important programs and projects execution.

Pursuant to the Agreement, the KMOK authorities entered into obligation to timely pay for current gas supplies to the budget sponsored consumers and timely gas price correction due to changes in whole sale prices regulated by the Government as well as to regulate land relations with Gazprom in pursuance of the existing legislation.

In its turn, Gazprom enters into obligation to supply needed gas volume, to participate in execution of the social and economic development plans of the region. Gazprom will assume measures to provide maximally possible treatment and processing of associated oil gas to the Company’s subsidiaries.

Background

The Agreement of cooperation between Gazprom and the Khanty-Mansiysk Autonomous Okrug-Yugra was signed due to the expiration of the five-year Agreement of cooperation signed in October 2001.

In 2006 Gazprom supplied more than 1.5 bcm of gas to the regional consumers. The same amount is slated for this year.

The region has no debt to pay for gas received. The level of current gas supplies in the region is at 101.5 per cent as of October 1, 2007.

The Khanty-Mansiysk Autonomous Okrug is gasified at 25.4 per cent including 26.3 per cent in towns and cities, 17.2 per cent in rural area. Russia’s average gas supply rates are at 58, 64 and 40 per cent, respectively.

In the frames of the Investment Program over 2003 to 2006 Gazprom invested RUR 27.2 mln to complete the construction of the branch pipeline of high pressure and automatic gas distribution station in the settlement of Agirish.

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